Napco Security Technologies (NASDAQ: NSSC) reported net income of $890,000 in the first quarter, an increase of 57 percent for the same quarter last year, the company said in a preliminary, unaudited statement. Napco reported net sales for the quarter were $21.2 million, 5 percent higher than a year earlier and a record for the company, Napco said. Recurring revenue, which is part of net sales, increased by 56 percent.
Napco is a diversified manufacturer of security products including access control systems, door-locking products, intrusion and fire alarm systems, video surveillance and home automation systems. The company offers a subscription-based service, StarLink Connect, that lets homeowners use an app to control their security systems, lights and other devices.
In a statement, Napco chairman and president Richard Soloway said, “The investments we have made in sales, marketing and engineering continue to provide a solid foundation for steady, consistent growth in sales and profitability and bode well for a strong future” for the company.
The company reported financial highlights that included:
- Income before taxes for the quarter 2017 increased 49 percent to $1,033,000 from $692,000 a year ago.
- Earnings per share (diluted) for the quarter was $0.05, as compared to $0.03 for the same period a year ago.
In the statement, Soloway said the company’s commercial divisions — Alarm Lock, Marks and Continental — continued to show a significant increase in market presence in the education market vertical.
Napco dealers and integrators, he said, are trained in systematically evaluating any school facility’s security level and then addressing any deficiency with school-specific security solutions.
“This approach and portfolio of product solutions is also increasingly being used in any public venues, in addition to educational facilities, concerned with addressing the growing threat of terrorist activities and active-shooter events,” he said.